Opportunities and challenges to biomass harvesting in Canada: An operational perspective Mark Ryans, R.P.F. FPInnovations - Feric Blandin Foundation – OMNR Tour May 15 2008 Thunder Bay, ON

Outline What is FPInnovations? Drivers for bioenergy Biomass harvest/recovery methods Harvesting systems determine biomass opportunities Key cost considerations Biomass volumes after harvesting Summary

What is FPInnovations?

Drivers for bioenergy

Biomass harvest/recovery methods

Harvesting systems determine biomass opportunities

Key cost considerations

Biomass volumes after harvesting

Summary

Toward an Integrated Innovation System FERIC FORINTEK PAPRICAN FIBRE CENTRE April 1, 2007

Federal Government Industry – 400+ Companies Provincial Governments Shared Priorities, Shared Risks, Shared Benefits, and Shared Costs FPInnovations Partnership British Columbia Alberta Saskatchewan Manitoba Ontario Québec New Brunswick Nova Scotia Newfoundland & Labrador Northwest Territories Yukon

Future Industry Sustainable Forests Commodity Wood Products Commodity Pulps & Papers Engineered Composites & Systems Sustainable Construction Appearance Products Value Added Pulps & Papers ‘ Bioproducts’& Bioenergy Now: Future: Market Value & ROI decreasing Bolt-on Plant Co-products

FPInnovations Business Model Addresses Sector’s Value Chain Built on Partnerships Emphasis on Sector Transformation Focus on an Emerging Bioeconomy

Addresses Sector’s Value Chain

Built on Partnerships

Emphasis on Sector Transformation

Focus on an Emerging Bioeconomy

Four Flagship Innovation Programs Value Chain Optimization Next Generation Building and Living Solutions Next Generation Pulps & Papers Bioenergy, Chemicals & Advanced Bioproducts

Interest in forest feedstocks and bioenergy Drivers: high energy costs (fossil fuels and electricity), global warming issues (carbon credits?) tight hog fuel supply, provincial government programs to encourage better use of residues and under-utilized species survival of the industry and northern communities long-term potential of wood-to-liquid fuel conversion processes, pellets, etc.

Drivers:

high energy costs (fossil fuels and electricity),

global warming issues (carbon credits?)

tight hog fuel supply,

provincial government programs to encourage better use of residues and under-utilized species

survival of the industry and northern communities

long-term potential of wood-to-liquid fuel conversion processes, pellets, etc.

Bioenergy is not new to Canadian forest operations Traditional use of hog fuel and black liquor Simple supply-chain infrastructure from source (sawmill) to CHP facility Biomass harvesting operations currently providing feedstock for burning

Traditional use of hog fuel and black liquor

Simple supply-chain infrastructure from source (sawmill) to CHP facility

Biomass harvesting operations currently providing feedstock for burning

Burning questions concerning forest feedstocks How much is available? What is the sustainable supply? To which businesses? How much does it cost? What harvest and recovery systems are available? How can biomass quality be improved to suit current and future uses?

How much is available?

What is the sustainable supply?

To which businesses?

How much does it cost?

What harvest and recovery systems are available?

How can biomass quality be improved to suit current and future uses?

Program Themes 2006-2010

Current uses CHP at pulp and paper mill Independent power producer Pellets

CHP at pulp and paper mill

Independent power producer

Pellets

Forest biomass sources Harvest residues* Under-utilized standing trees* Sortyard/chipping terminal debris* Early thinnings and “fire-smart” treatments Non-commercial stands Burnt and insect-killed stems (MPB) Stumpwood Energy plantations *operational in Canada

Harvest residues*

Under-utilized standing trees*

Sortyard/chipping terminal debris*

Early thinnings and “fire-smart” treatments

Non-commercial stands

Burnt and insect-killed stems (MPB)

Stumpwood

Energy plantations

*operational in Canada

Residues from different harvest systems: - Biomass types and location Harvest residues: Roadside-stroke delimber (full-tree) Landing-DDC (full-tree) In cutover – harvester (cut-to-length)

Harvest residues:

Roadside-stroke delimber (full-tree)

Landing-DDC (full-tree)

In cutover – harvester (cut-to-length)

The Nordic way Cut-to-length harvesting systems Private land with small operating blocks (2 – 5 ha) Three sources of biomass from the forest: Recovery of harvest residues within the cutover Use of stumps Harvest of small trees

Cut-to-length harvesting systems

Private land with small operating blocks (2 – 5 ha)

Three sources of biomass from the forest:

Recovery of harvest residues within the cutover

Use of stumps

Harvest of small trees

The Nordic way Key elements to their success: National policy to promote forest biomass use Concerted R&D programs Biomass recovery and harvest systems tailored to their resources and wood harvest systems Modernized CHP plants to optimize use of forest residues Guidelines/best practices are in place

Key elements to their success:

National policy to promote forest biomass use

Concerted R&D programs

Biomass recovery and harvest systems tailored to their resources and wood harvest systems

Modernized CHP plants to optimize use of forest residues

Guidelines/best practices are in place

CTL residue recovery systems Cut-to-length harvesting: recovery of debris within the cutover Bundling or forwarding loose debris with roadside chipping

Cut-to-length harvesting: recovery of debris within the cutover

Bundling or forwarding loose debris with roadside chipping

CTL systems: Residue bundlers/compactors Continuous Batch Compactor – Container system

CTL systems and Nordic practice: - mills tailored for biomass deliveries Just in time deliveries, covered storage and conveyors Scaling, receiving and feedstock monitoring Large central crusher driven by an electric motor Source: Hakkila, P. 2004. Tekes, Technology Program Report 6/2004.

Just in time deliveries, covered storage and conveyors

Scaling, receiving and feedstock monitoring

Large central crusher driven by an electric motor

Canadian residue recovery systems: - full-tree harvesting systems dominate Delimber-debarker-chipper (DDC) - white-wood chips to pulp mill Stroke delimber or roadside processor - tree lengths to sawmill

Recovery of roadside residues Stroke delimber Delimber-debarker-chipper

Full-tree harvest residues: Low-hanging fruit? Already at roadside or landing Paid for (?); spending money to get rid of it Location and condition of road Level of contamination and moisture content Integration between conventional harvest and residue recovery Currently treated as waste

Already at roadside or landing

Paid for (?); spending money to get rid of it

Location and condition of road

Level of contamination and moisture content

Integration between conventional harvest and residue recovery

Currently treated as waste

Key Cost Considerations: - feedstock cost is a key to competitiveness Delivered wood cost to mill is the single largest component of final product cost (40 to 60%) The delivered costs of forest-origin residues could be higher

Delivered wood cost to mill is the single largest component of final product cost (40 to 60%)

The delivered costs of forest-origin residues could be higher

Cost factors: - high transportation costs A Basic Problem: Transporting a low-value, low bulk-density material with a high moisture content over a long distance Importance of maximizing payload through comminution and compaction Photo Credit: Holman - John Deere (FERIC Winning Solutions 2006)

A Basic Problem:

Transporting a low-value, low bulk-density material with a high moisture content over a long distance

Importance of maximizing payload through comminution and compaction

Delivered costs: – Eastern Canada, residues from roadside stroke-delimber Pre-piling Comminution Transport: - 120 km one-way, live-floor chip van Other: - roads, supervision, overhead, maintenance, compliance, stumpage *Cost estimates: FERIC BiOS model

Key Cost Considerations: - high transportation costs It may be more cost effective to convert the feedstock in the field and transport a denser fuel Mobile/portable biorefinery or pellet plant Advanced Biorefinery Inc.

It may be more cost effective to convert the feedstock in the field and transport a denser fuel

Mobile/portable biorefinery or pellet plant

Cost factors: - high comminution costs High capital cost: $400 000 to $500 000 chipper ; $500 000 to $850 000 grinder with separate loader Sensitive to contamination, truck scheduling and residue concentration Low utilization, high fuel consumption Not designed for working at roadside

High capital cost: $400 000 to $500 000 chipper ; $500 000 to $850 000 grinder with separate loader

Sensitive to contamination, truck scheduling and residue concentration

Low utilization, high fuel consumption

Not designed for working at roadside

Disc chippers Clean, well-prepared hardwood tops

Clean, well-prepared hardwood tops

Drum chippers Truck or trailer-mounted versions Larger infeed deck and opening Less sensitive to contaminants than a disc chipper Potential use in hardwood and softwood residues

Truck or trailer-mounted versions

Larger infeed deck and opening

Less sensitive to contaminants than a disc chipper

Potential use in hardwood and softwood residues

Horizontal grinders Trailer- and track-mounted models 450 – 735 kW recommended High fuel consumption Can handle various feedstocks

Trailer- and track-mounted models

450 – 735 kW recommended

High fuel consumption

Can handle various feedstocks

Biomass harvest and recovery systems Recovery systems for roadside debris Tracked and trailer-mounted horizontal grinders Hot system vs. cold-decked

Recovery systems for roadside debris

Tracked and trailer-mounted horizontal grinders

Hot system vs. cold-decked

Cost factors: - integration within existing management and harvesting operations Conventional harvest affects the cost and quality of the residue recovery operation Concentrated vs. scattered debris, contaminates, roads and snow removal, etc.  

Conventional harvest affects the cost and quality of the residue recovery operation

Concentrated vs. scattered debris, contaminates, roads and snow removal, etc.

Cost and quality factors: - moisture content For CHP and most thermochemical processes, low moisture content is a major consideration

For CHP and most thermochemical processes, low moisture content is a major consideration

Residue volumes after recovery - biomass flow Merchantable (logging) Potentially available Total biomass Roadside slash Standing residuals Cutover slash Silvicultural and ecological retention Technical usability Harvestable biomass

Forest-origin biomass sources - potential vs. recoverable volumes Potentially Available Technically Usable Total Biomass Economically Viable ?

Biomass yield varies by species Single tree biomass: Black Spruce vs. Jack Pine (DBH: 26 cm, Ht: 18 m) Ontario FRI: Sb90 Pj10 vs. Pj90 Sb10 (Site Class 2, 90% stocking, 100 yr) 17.5 ODT/ha* 7.7 ODT/ha* Recoverable volume FERIC BiOS model Needles 37 13% Live Branches 16 6% Stem Bark 21 8% Stem Wood 202 73% Dry Wt: 276 kg Stem Bark 15 6% Needles 13 6% Live Branches 10 4% Stem Wood 193 84% Dry Wt: 231 kg

Needles

37

13%

Live Branches

16

6%

Stem Bark

21

8%

Stem Wood

202

73%

Dry Wt: 276 kg

Stem Bark

15

6%

Needles

13

6%

Live Branches

10

4%

Stem Wood

193

84%

Dry Wt: 231 kg

Biomass recovery on full-tree site, Kapuskasing, ON Black spruce stand Potentially available 50.5 odt Roadside slash 32.6 odt Standing residuals 2.5 odt Cutover slash 15.5 odt Recovered biomass 25.2 odt

Biomass recovery on full-tree site, Kapuskasing, ON Mixedwood stand (low hardwood utilization) Potentially available 131.0 ODt Roadside slash 40.5 ODt Standing residuals 47.8 ODt Cutover slash 42.7 ODt Recovered biomass 31.9 ODt

Future outlook: Greater need for forest-origin feedstocks Pulp mill to forest biorefinery (Paprican Division) Wood-to-liquid fuel/wood-to-power and heat processes become commercial reality Wood chips Chemicals Sawmill residuals Pulp Emissions Landfill solid waste Effluent Forest residues Fuels Chemicals Power

Other factors State of the industry and availability of capital Wood-to-liquid fuel processes are still years away Current low value of forest residues that have a low bulk density and high moisture content resulting in high delivered feedstock costs Capital costs for a small contractor to get into the business are very high 50000 ODt contract requires over $2 million in capital costs and another $2 million in operating costs Sustain or create 11-12 jobs

State of the industry and availability of capital

Wood-to-liquid fuel processes are still years away

Current low value of forest residues that have a low bulk density and high moisture content resulting in high delivered feedstock costs

Capital costs for a small contractor to get into the business are very high

50000 ODt contract requires over $2 million in capital costs and another $2 million in operating costs

Sustain or create 11-12 jobs

Summary and opportunities Bioproduct opportunities based on forest feedstocks will revolutionize the way we view and manage the forest A new product stream from our woodlands operations (reduced cost of all feedstocks) Biomass harvesting can lead to actual increases in current merchantable volumes Silvicultural improvements through biomass recovery can lead to a more valuable forest Sustainable levels must be established

Bioproduct opportunities based on forest feedstocks will revolutionize the way we view and manage the forest

A new product stream from our woodlands operations (reduced cost of all feedstocks)

Biomass harvesting can lead to actual increases in current merchantable volumes

Silvicultural improvements through biomass recovery can lead to a more valuable forest

Sustainable levels must be established

Summary and opportunities Lots of biomass around but economically- viable volumes need to be established Bioenergy/bioproduct opportunities will make us rethink our traditional approaches to harvesting Biomass harvesting will create/sustain woodlands jobs

Lots of biomass around but economically- viable volumes need to be established

Bioenergy/bioproduct opportunities will make us rethink our traditional approaches to harvesting

Biomass harvesting will create/sustain woodlands jobs

Questions?